Integrated Social Infrastructure Delivery Programme CAPABILITY STATEMENT REPORT. 31 January 2016

Transcription

1 Integrated Social Infrastructure Delivery Programme CAPABILITY STATEMENT REPORT 31 January 2016

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3 PG 4 1. Purpose 2. Introduction 3. Background 4. Summary Of Product Offering 6 5. Elaborated Product Offering 5.1 Planning & monitoring Project & programme management Socio-Economic & Enterprise 11 Development Deliverables 5.4 Facilities Management 12 PG Properties Management 7. Advantages of Using ECDC 8. Procurement Management Service Resources Possible Project Key Success Factors ECDC Fee Structure Conclusion 19

4 1. Purpose Is to outline the capabilities and the possible capacity that the ECDC: Integrated Infrastructure Unit has in its disposal in order to implement infrastructure programme on behalf of government 2. Introduction The Eastern Cape Development Corporation (ECDC) established in terms of Section 2 of ECDC Act No 2 of 1997, is mandated by the Provincial Government of the Eastern Cape in its Department of Economic Development and Environmental Affairs to plan finance coordinate, market promote and implement the development of the Province and all its people in the fields of industry, commerce, agriculture, transport and finance. ECDC, has in terms of the Eastern Cape Development Corporation Act read with the Corporations Transitional Provisions Act 12 of 1995, become successor in title to the predecessor institutions that were merged to form ECDC. On the 30th October 2013 the Provincial Executive Council resolved, to appoint ECDC as an additional infrastructure delivery arm, focusing on maintenance and renewal of existing social infrastructure. In September 2014, section 54 approval was also obtained enabling ECDC to commence with significant business activities. 3. Background During the 2013/14 Budget adjustment period, ECDC was allocated a budget of R300 million for implementation of the social infrastructure projects, following the appointment of ECDC as an additional infrastructure delivery arm of government (to focus on improving the functionality of existing social infrastructure). In January 2014, ECDC submitted a list of 49 identified projects to Eastern Cape Provincial Treasury (ECPT) for approval, of which seven (7) were approved in February By the end of July 2014, the ECDC had put forward another list of projects, the approval of which was granted in August R300m 2013/14 Budget for social Jan 2014 infrastructure projects 49 projects Identified by ECDC & submitted to Eastern Cape Provincial Treasury (ECPT) for approval 7 projects 4 projects Feb 2014 Aug 2014 Commenced & proceeded to implementation approved by ECPT out of the 49 projects out of the above mentioned list of approved projects 4 ECDC CAPABILITY STATEMENT

5 Current Portfolio The following is the portfolio of projects that ECDC is currently implementing: # Client Description of Work Status 1 Provincial Treasury (PT) Phase 1: Makana - Water Interventions Construction Start Date Construction Projected Completion Date Estimated Project Cost Construction 01 Feb Dec 2015 R Provincial Treasury (PT) 3 Department of Education (DoE) Phase 2: Makana - Sewer Interventions Flagstaff Comprehensive Phase 1 Primary School Planning 11 Feb Feb 2018 R Construction 04 Nov Nov 2016 R Department of Education (DoE) Dilizintaba HS Construction 05 Nov Apr 2017 R Department of Education (DoE) Plangeni JSS Tender 29 Feb Nov 2017 R Department of Education (DoE) 7 Department of Education (DoE) Flagstaff Comprehensive Phase 2: New High School Project Management Office (PMO) Planning 01 Jun May 2018 R On Site 01 Aug Aug 2018 R Mayibuye Transport Services (MTC) Refurbishment of Alice Depot Tender 07 Mar Sep 2016 R Mayibuye Transport Services (MTC) Refurbishment of Queenstown Depot Planning 08 Mar Sep 2016 R Eastern Cape Development Corporation (ECDC) Refurbishment of Mthatha Garden Court Planning 04 Apr Apr 2017 R Eastern Cape Development Corporation (ECDC) Redevelopment of Mdanstane Mall Planning 05 Apr May 2018 R Grand Total R ECDC CAPABILITY STATEMENT 5

6 4. Summary Of Product Offering The below figure 1 is the summary of the products that are offered by the unit 1. Planning & Monitoring a) Pre-Planning b) Assessments; c) Prioritization and Standardization; d) Business Cases & IPMP; e) Project Briefs & Concept Design; f) Compliance & Monitoring; and g) Reporting 3. Socio-Economics & Enterprise Development Deliverables a) Manage 35% SMME Packages; b) Set up and manage SMME Database; & c) Training and Mentoring of SMME s; d) Local Labour Management: Placement & Recruitment; e) Training: Technical & Non Accredited; & f) Intern placement and training 2. Project & Programme Management a) Projects Management: Master plan & Concept Design; Detail Design; Documentation (BOQ) & Procurement (contractor); Contract Administration; & Close Out b) Financial and Audit Management; c) Procurement Management; & d) Commissioning 4. Facilities & Property Management a) Mechanical & Electrical; b) Fire Protection & Life Safety Systems; c) Building & Civil Elements; d) External Services; e) Property & Tenant Management; and f) Specialized Services Planning & Monitoring Project & Programme Management Programme Management Socio-Economics & Enterprise Development Deliverables Facilities & Property Management 6 ECDC CAPABILITY STATEMENT

7 5. Elaborated Product Offering 5.1 Planning & Monitoring (a) Assistance with holistic and integrated planning, prioritization of Sector Departments projects and budgeting; (b) Conceptualization of projects and translation of high level conceptual or strategic issues into implementable projects; (c) Monitor and report on various elements of the project during construction and post construction; and (d) Packaging and submission of a number of legislative requirements (e.g. IPIP, IYM, DORA Reporting); (e) Develop and monitor a detailed Project Management Plan for implementation of the projects, (f) Procurement of service providers (PSPs) to carry out the implementation of projects, direct transaction with these service providers and their management during the implementation of projects (This includes taking over and managing all the risks associated with both procurement matters and with contracts management); (g) Co-ordinate and integrate the Client requirements with regard to the project briefs, conditional assessments, master plans and site development plans; (h) Advise the Client on the requirement to appoint a Health and Safety Agent including its procurement and managing during the construction; and (i) Communicate the scope of works to the consultants and monitor the development of the project brief and concept designs. 5.2 Project & Programme Management (a) Implement projects on behalf of government departments and organs of states e.g. DoE (Schools); DoH (Healthcare Worker s Accommodation); MTC (Bus Deports) & Municipalities (Water and Sanitation); (b) The following are the detailed services that will be provided by the ECDC on these projects. These services are broken down into various project stages: Stage 1 - Project Initiation (Project Brief/ Charter, Conditional Assessments, Master Plans (Site Development Plan) & De/Commissioning Plans) (1) Develop comprehensive Business Cases for submission; (2) Assist in the preparation and submission of the B5 (3) Assist in project prioritization including standardization of project plans; (5) Develop and monitor a detailed Project Management Plan for implementation of the projects, (6) Procurement of service providers (PSPs) to carry out the implementation of projects, direct transaction with these service providers and their management during the implementation of projects; (7) Co-ordinate and integrate the client requirements with regard to the Project Brief/Charter, Conditional Assessments, Master Plans (Site Development Plan) & De/Commissioning Plans; and (8) Manage and monitor the preparation of the Project Brief/Charter, Conditional Assessments, Master Plans (Site Development Plan) & De/ Commissioning Plans Stage 2 - Concept Design (Preliminary Designs) (1) Communicate the scope of works to the consultants and monitor the development of the project brief and concept designs; (2) Ensure the implementation of the standardization plans and implementation of the most cost effective design; (3) Manage and monitor the preparation of the concept design and costing by the consultants with specific reference to site matters that may affect the project costs; (4) Prepare and co-ordinate an Indicative Project Documents and Project Programme; (5) Manage the integration of concept deign presentation to the Client for approval including the facilitation of Clients approvals; and (6) Procure the services of a Health and Safety Agent including its management during the construction; ECDC CAPABILITY STATEMENT 7

8 5. Elaborated Product Offering Stage 3 Detail Design (1) Establish a design Project Review Committee with one member representing every stakeholder; (2) Conduct monthly project progress design review meetings with the consultants and the Client; (3) Manage the performance of the consultants, with specific reference to deliverables, and fee payable; (4) Actively pursue the optimisation of the designs and implementation strategies; (5) Establish and co-ordinate the formal and informal communication structure, processes and procedures for the design development of these projects; (6) Prepare, co-ordinate and agree on a detailed Design and Documentation for these projects; (7) Manage, co-ordinate and integrate the design by the consultants in a sequence to suit the project designs and documentation; (8) Facilitate and manage the client participation, by establishing the working group committee to participate during the designs of these projects; (9) Manage and monitor the timeous submission by the design teams of all plans and documentation to obtain the necessary statutory approvals; (10) Conduct Value Engineering exercise on detail designs; (11) Facilitate any input to the design consultants required by Health and Safety Agents; (12) Manage the preparation of cost estimates by the Quantity Surveyors, budgets and cost reports; (13) Ensure energy efficient designs are applied; (14) Cost control to achieve cost effective designs; (15) Facilitate and monitor the timeous technical co-ordination of the designs by the design teams; and (16) Manage and monitor the planning and documentation of Decommissioning and Commissioning of the facility, including change management planning Stage 4 - Tender Documentation and Procurement (1) Prepare and agree on a the project procurement strategy and approach; (2) Prepare and agree on the tendering process and format of tender evaluations; (3) Co-ordinate and monitor the preparation of the tender documents by the consultants; (4) Ensure consultants carry out pre-tender cost estimates to confirm available budget; (5) Preparation of Health and Safety Specifications; (6) Prepare Enterprises development and Socio Economic Specifications and ensure its implementation; (7) Ensure inclusion of SMME participation in designs and/or tender documentation; (8) Manage the tender process in accordance with the ECDC Procurement Policy and (9) PFMA requirements, including calling for tenders, adjudication of tenders, and (10) appointment of contractor, all conforming to CIDB and Government procurement procedures; (11) Manage all the risks associated with tendering process; and (12) Facilitate Client approval to proceed with the construction contracts Stage 5 - Construction Documentation and Management (1) Appoint contractors with signing of JBCC contracts; (2) Ensure that all contractual obligations from the contractors are met e.g. guarantees, insurances, programmes, etc. are in place; (3) Manage the performance of the consultants, with specific reference to deliverables and fee remuneration; (4) Manage the performance of the contractors with specific reference to deliverables, cost structures, interest and penalties; (5) Actively pursue the optimisation of the designs and implementation strategies; (6) Facilitate the hand-over of site to the contractors; (7) Establish and co-ordinate the formal and informal communication structure and procedures during the construction periods; (8) Monitor, review and approve the preparation of the contract programmes; 8 ECDC CAPABILITY STATEMENT

9 5. Elaborated Product Offering (9) Regularly attend the necessary site meetings; (10) Monitor the compliance by the contractors with regard to the requirements of the Health and Safety Agents; (11) Monitor the auditing of the contractors Health and Safety Plans and on site auditing by the Health and Safety Agents; (12) Monitor the compliance by the contractors of the requirements of the Socio - Economic Deliverables; (13) Establish if any scope may require environmental approval such heritage approval permits, etc. and action on behalf of the client; (14) Manage the preparation of the Environmental Management Plans by Environmental Consultants (if required); (15) Agree and manage the document schedules to ensure timeous delivery of required information to the contractors; (16) Establish procedure for monitoring, controlling and agreeing all scope and cost variations not exceeding 20% of the original appointed contract value. Formal approvals to be obtained from the client prior to instruction to proceed with any scope changes where the contract amount will be exceeded; (17) Agree and monitor all quality assurance procedures and implementation thereof by both the consultants and the contractors; (18) Monitor, review, approve and certify monthly progress payments of all Service Provides; (19) Receive, review and adjudicate any contractual claims; (20) Monitor the preparation of monthly cost reports by the Quantity Surveyors; (21) Submit all necessary cash flows to the Client; (22) Prepare monthly project reports (reporting on project progress and financial management) including any other submission to the Client; (23) Manage, co-ordinate and monitor all necessary decommissioning and commissioning by both the consultants and contractors; (24) Co-ordinate and monitor the defects/snag lists to enable the issue of the Certificate of Practical Completion; (25) Monitor the execution of the defects items to achieve works completion and the issue of a Works Completion Certificate; and (26) Monitor the execution of the defects items during the defect period to achieve final completion and the issue of a Final Completion Certificate Stage 6 - Project Close Out (1) Manage, co-ordinate and expedite the preparation of As-Built drawings; (2) Manage and expedite the issue of all operating and maintenance manuals as well as warrantees and guarantees; (3) Manage, co-ordinate and expedite the preparation and agreement of the final account by the consultants with the relevant contractors; (4) Process final accounts; (5) Receive and review Close-out Reports from the Consultants; (6) Submit a project Close-out Report with project and financial data to the Client. ECDC CAPABILITY STATEMENT 9

10 5. Elaborated Product Offering Stage 7 Commissioning and De-commissioning (1) Manage process by consultants to drawing up a standard list of equipment required for the new facility for approval by the Client e.g. domestic furniture, office furniture, outdoor furniture, machines, etc; (2) Manage consultants to prepare the relevant bid documentation and a programme for procurement and deliveries; (3) Procure all equipment as prescribed by the client; (4) Award the bids and issue orders for supply and delivery of equipment; (5) Manage consultants on delivery and to record all equipment and furniture, track what has been delivered, what is delayed, etc; (6) Manage consultants to ensure that suppliers have trained staff on the usage of equipment where required; (7) Manage consultants to facilitate the moving of new equipment into the new facility using labour supplied through the recruitment office or a moving company; (8) Manage consultants to facilitate the decanting of any items from the new building to old building; (9) Manage consultants to prepare documentation required for the disposal of any condemned equipment; (10) Ensure consultants hand over all relevant documentation to the Client on completion of the decommissioning and commissioning phase; and (11) Ensure that all Immovable and Movable assets are properly recorded in accordance with the Government Immovable Asset Management Act (GIAMA) principles. 10 ECDC CAPABILITY STATEMENT

11 5. Elaborated Product Offering 5.3 Socio-Economic & Enterprise Development Deliverables (a) Ensure realisation of socio-economic objectives which include facilitating development of skills, SMME s and on-the-job training; (b) Undertake Enterprise Development Programme and the emphases will be on Contractor Development which will be implemented over the 3 year programme and will concentrate on Grade 5,4,3,2 and 1; and (c) Undertake the Environmental Scan to establish the level of supply and demand which is to give guidance on which areas are to be targeted in the first three years and what service providers are to be targeted including levels; monitoring structure; (g) Prepare all documentation to be used for the implementation process; (h) Prepare all training manuals and developmental plans; (i) Appoint all necessary SP to undertake the Enterprise Development over a period of three years; (j) Facilitate all required Project Financing in support of the SMME; (k) Establish Area Specific Databases and Panels of contractors and professional service providers; (l) Manage the tender process in accordance with the ECDC Procurement Policy and PFMA requirements, including calling for tenders, adjudication of tenders, and appointment of contractor, all conforming to CIDB and Government procurement procedures; Manage the tender process in accordance with the ECDC Procurement Policy and PFMA requirements, including calling for tenders, adjudication of tenders, and appointment of contractor, all conforming to CIDB and Government procurement procedures; (d) Manage the mobilization and consultative process is to be conducted in order to ensure that all stakeholders are brought on board and buy in is achieved; (e) Ensure project governance structures are established in each area and which will assist to monitor the implementation which include among others the Project Steering Committee (PSC); and Local Advisory Committee (LAC); (f) Take responsibility of the overall planning of the programme from assessment and confirmation of scope, development of management tools and plans for the consideration and approval of (m) Take full responsibility of the entire construction process, which includes overall support of SMME (emerging contractors and suppliers) and ensure that all required securities and sureties are provided; (n) The support will include but not limited to project financing; materials supply; plant and equipment and all other requirement; (o) Undertake all training and mentorship using approved experienced mentors; and (p) Undertake all contract administration including reporting ECDC CAPABILITY STATEMENT 11

12 5. Elaborated Product Offering 5.4 Facilities Management (a) Development of a strategic Maintenance Plan and facility Maintenance Management Structure for the Department; (b) Development of technical specifications and standards for all maintenance services; (c) Development of an efficient and effective routine servicing (scheduled maintenance) programme; (d) Development of an efficient and effective emergency repairs (unscheduled maintenance) capability; (e) Development of a programme for Replacement/ Repair/Upgrading of specified equipment and ECDC buildings; (f) Development of detailed schedule of rates for each discipline of trade and/or asset type; (g) Development of Tender documentation and technical evaluation of tenders for maintenance contractors; (h) Plan, schedule, coordinate and be responsible for the efficient, effective, economical and satisfactory general maintenance operations of the facilities; (i) Regular assessment of the condition of facilities and their systems as well as developing and implementing the facilities operations and preventative maintenance programs necessary to maintain, preserve and keep the facilities in good condition; (j) Set up and conduct a Facility Maintenance Management Inspectorate to assist with the managing of term maintenance contractors and conducting regular inspections at ECDC facilities; (k) Monitoring, quality control and approval of works done by maintenance contractors or maintenance teams; (l) Monitoring compliance with the Occupational Health and Safety Act (OHSA), and with the National Environmental Management Act (NEMA) and other relevant legislation; (m) Manage works orders and ensure that value for money is created for all the works orders carried out; (n) Set up and conduct an efficient 24/7 call centre to be integrated into the maintenance management system; (o) Regular reporting to the Department and providing reports in formats prescribed by the ECDC; (p) Providing works inspection and management services on sites in the Province monitoring compliance with general quality assurance, Occupational Health and Safety Act (OHSA), the National Environmental Management Act (NEMA), National Building Regulations; and compliance with other relevant legislation; (q) Development of an SMME programmes in order to encourage socio-economic development of the regions. This programme must address inter alia: use of local labour, procure of materials and equipment in the local market, training of interns for local students and providing experiential opportunities for the unemployed graduates, sub-contracting to local businesses to targeted groups. 12 ECDC CAPABILITY STATEMENT

13 Properties Management 6(a) Timeously and efficiently attend to all tenant maintenance requests; (b) Maintain good tenant relations through regular personal contact, proactively contacting tenants concerning their tenancy in the building; (c) Coordination and design of all special requirements of the tenants; (d) Ensure proactive communication to all tenants owner s goals & objectives for the property and scheduled and unscheduled maintenance and capital projects occurring at the property; (e) Regularly review reports generated from work order system, identify maintenance call trends and proactively develop a plan to minimize tenant calls and increase tenant satisfaction; (f) Vet prospective tenants by collecting references and carrying out credit checks; (g) Assist in sourcing and placement of the (h) Ensure properties meet legal and health and safety requirements, e.g. gas safety certificates; (i) Draw up tenant agreement contracts; (j) Collect or organise rent payments on behalf of the client; and (k) Act as a property management agent and resolve any issues that arise within the properties. Efficient and timeous attention to tenants. Maintain good tenant relations through regular communication. Vet prospective tenants through references and credit checks. 7. Advantages Of Using ECDC Apart from the above mentioned, the Clients can further benefit from the below advantages when using ECDC to implement their project: (a) The funds transferred to ECDC are not declared as unspent as of the 31st of March, as it is the case with provincial (client) departments; (b) The transferred funds are only surrendered by the 31st of July if they are no commitments; (c) This therefore affords the ECDC ample of time to plan and commit the funds; (d) As a 3D entity, the rules state that when dealing with the multi-year projects, it is therefore not necessary to produce invoices to support commitments; (e) Provide relatively quick turn-around time with ability to successfully respond speedily to the client s needs, including procurement and payments of service provides; ECDC CAPABILITY STATEMENT 13

14 7. Advantages Of Using ECDC (Cont.) (f) Shortened procurement process to appoint consultants and contractors; (g) Well-developed financial management systems; (h) Meaningful incorporation and implementation of socio-economic aspects with project execution; (i) Fully aligned to PFMA & CIDB requirements; (j) Ability to effectively manage labour issue thus ensuring labour stability on construction sites; (k) Carrying most of the project risks, risks associated with the tendering processes; risks associated with contractual matters with appointed Service Providers; risks associated with financial management; risks associated with financial flows; risks associated with successful implementation of the project; (l) Proper management of project records for Audit Purposes; (m) Provision of one-stop service on infrastructure related delivery which would include procurement of equipment and commissioning of the facilities; (n) Quality of the ECDC Team skill, expertise and professionalism of the Team (including the professional management of all service providers); (o) Quality of service going an extra mile, meeting or satisfying the Clients requirements and continuous improvement of services delivery; (p) Responsiveness and Flexibility ability to respond to the Client ad-hoc requests; and (q) Dependability and trustworthiness drive, stature of the team, professionalism, ethical orientation, adherence to legislated requirements. 8 Procurement Management Service (a) Procure and manage all duly appointed Service Providers in line with the procurement policy of the department, which policy shall comply with the Preferential Procurement Policy Framework Act (PPPFA), Broad Based Black Economic Empowerment (BBBEE) Act and the Construction Industry Development Board s prescripts on procurement; (b) The below in figure 2 procurement process flow is to be observed at all times when procurement is conducted: 14 ECDC CAPABILITY STATEMENT

15 Procurement Process Flow Prepare a BSC submission by the PM Signed of by EM: ISIDP & Procurement Man Submit to the BSC for approval Yes Close the Bids and Submit to BEC Conduct Mandatory Briefing Approve for advert or panel Yes PM to prepare a PC submission and signed of by SM & EM ISIDP Submit to the PC for approval (R500k - R20m) PM to prepare EXMA Submission Yes Submit to the board for approval (R50m - Unlimited) EM: ISIDP prepare board submission Submit to the EXMA for approval (R20m -R50m) Yes Conduct clarification Meeting SCM to issue a letter of intent SCM to issue letter of appointment Yes Sign a SDA or Contract Project kick off Meeting Project Commencement ECDC CAPABILITY STATEMENT 15

16 9. Resources The current ECDC Infrastructure Organogram consist of about 32 staff is as per the below Figure 3. It is our belief that the current organogram is flexible enough to handle any size and complexity of the programme on behalf of any client. Exec. PA & General Admin Senior Manager: Programme Planning and Monitoring Senior Manager: Facilities Management Sub-Programme Admin Architect Quantity Surveyor Civil Engineer Cluster Manager: Facilities Management Clark of Works Project Manager: EletroMechanical Project Manager: Building & Civil Project Manager: Soft Service Intern 16 ECDC CAPABILITY STATEMENT

17 ECDC Infrastructure Organogram Executive Manager: ISIDP Business Development Manager Senior Manager: Project Implementation Senior Manager: Socio-Economic & Enterprise Development Sub-Programme Admin Social Facilitation Coordinator Support Services Manager Project Manager: Top Structure (X2) Project Manager: Roads (X2) Manager: Commissioning Placement & Training Coordinator Project Accountant (Finance) PM: Water & Sanitation (X2) SMME Mentor Procurement Specialist (SCM) Contracts Manager (Legal) Intern Commissioning Coordinator Intern ECDC CAPABILITY STATEMENT 17

18 10. Possible Project Key Success Factors It is essential that the criteria for measuring the success of the projects to be implemented are defined at the beginning of each project so that different stakeholders will be able to judge the success of the project on this basis. Each project success will be measured in terms of the degree to which the objectives of Time, Cost, Scope, Quality and Socio-economic imperatives. (a) Within the allocated - Time period (i) Each project will be completed within the specified contract duration; (ii) Any construction schedule delays will be closely monitored to ensure that the over runs as percentage of initial plan are considered in advance. (b) Within the budgeted - Cost (i) The Contract Amounts will be closely monitored and any significant increase in contract values will be discussed with the Client of such; (ii) The design/specification changes and any scope creeping will be closely monitored to ensure that all happens within the allocated budgets; (iii) Any claims arising from a failure on the part or the design teams or from outside the project teams (inclement weather, Force Majeure, etc.) will be closely monitored and remedial measures taken to ensure the budgets are not exceeded. (iv) Where there might be budget overruns, the Client will be notified in advance; and (v) The Client will be notified on a monthly basis of any cost effects i.e. Variation Orders for additional works. (c) At agreed performance and specification level Quality (i) The design specifications will be reviewed before the tendering process to ensure that when the facilities are completed, it is accepted by the stakeholders and/or end-user; (ii) ECDC will ensure that the quality assurance and quality control measures are in place to frequently monitor the performance of the building contractors while the facilities are being constructed; (iii) ECDC will ensure that the standards and specifications are met during construction. (d) Achieving the socio-economic imperatives SE Issues Targets to be set on each project are: (i) Minimum number of people to be employed; (ii) Number of people to be trained during construction; (iii) Internships opportunities be afforded to university graduates; and (iv) Maximum use of local labour on the sites. 11. ECDC Fee Structure (a) The costing shall take into consideration the different stages of project development and the risks, dynamics, and complexities associated with each stage as follows: (i) During the preliminary or project development stage (which includes conceptualization; planning; determination of preliminary cost estimates; determination of roll-out plans; procurement of services providers to carry out designs; development of concept designs; liaison with all relevant stakeholders and users; approval of concept and detailed designs; and procurement of contractors) time and cost basis shall be used; and (ii) During the implementation stage the percentage basis shall be used, which shall 8% of the total cost of implementing the programme. (b) The hourly rates shall be based on a recognised fee scale as prescribed in the Dept of Public Service & Administration (DPSA) Schedule, the Engineering Profession Act, 2000, as amended from time to time, and the Dept of Public Works Guidelines. Such rates shall be reviewed annually; 18 ECDC CAPABILITY STATEMENT

19 (c) The ECDC hereby records its undertaking to subject the standard industry rates to a reasonable discount in pursuit of co-operative governance and direct engagement of a public entity; (d) The ECDC shall invoice the Client on a monthly basis for its programme management fees and disbursements, and the Client shall settle such invoice within a period of thirty (30) days of receipt of invoice; and (e) All disbursements will be paid on proof of invoices and shall be for the account of the client. 12. Conclusion (a) This document, together with the Programme Implementation Plan (PMP) which will be developed once the projects have been identified shall form part of the agreement between the Parties; (b) The undersigned hereby record their approval of the appointment of the ECDC as the Implementing Agent; and (c) The detailed list of projects to be implemented will be issued to the ECDC in due course. ECDC CAPABILITY STATEMENT 19

20 East London: Ocean Terrace Park, Moore Street, Quigney, 5211 Port Elizabeth: Mill Park, 68 Cape Road, PIVOT CONSULTING 20 ECDC CAPABILITY STATEMENT